Payroll deductions & contributions

FMW · ‎May 06, 2021

Hello,

I thought I set up payroll correctly, but apparently I've done something wrong with employee deductions/employer contributions.

Union Employee:

1. created a Pay Item which Adds Vacation to gross pay. No problem here.

2. created Vacation Wage Deduction of the Vacation Wage (Liability amount sent to Union offices) $, as it is deducted from gross AFTER taxes. This offsets the Vacation Pay Item.

3. created a Company Contribution named Vacation Add, which is also is set up as a liability sent to the Union offices.

Herein lies my delimma, both the Vacation Wage Deduction (#2 above) and the Company Contribution (#3 above) show as liabiities to be paid, i.e., doubling the vacation liability when it comes to Pay Liabilities.

Attached is a copy of the pay stub for reference. The stub shows everything that needs to show on the stub. But how do I enter the Taxable Company Item OR the employee's "Deduction from Gross" so that one or the other one oo the Pay Liabilities.

Attached is the paystub with the "View Paycheck" included for reference.

Thank you,

QBDT Premier 2019

Enhanced Payroll

Thanks,

JenoP · ‎May 06, 2021

Hi there, FMW.

Thanks for sharing a screenshot of the paycheck. Payroll items (deductions and company contributions) that are mapped to payroll liability will post an amount to that account if used in a paycheck.

QuickBooks will only offset the amount in the paycheck and not in the payroll liability account. This is because both wage deduction and company contribution are using the same account. I'd suggest reaching out to your accountant to check what account to use in the wage deduction to avoid adding it to Payroll Liability. You can also create a journal entry to remove the amount from this item in your liability account. Here's how:

Go to the Company menu and select Make General Journal Entries.
Fill out the fields to create your journal entry. Make sure your debits equal your credits when you’re done. I'd recommend asking your accountant as well what accounts to use for this entry.
Click Save or Save & Close.

Another option is to create an adjustment to zero out the wage deduction in your payroll liability account. Here's an article for more details: Adjust Payroll Liabilities in QuickBooks Desktop.

Feel free to check out this article for additional and future reference: Run Payroll Liability Balances Report.

Reach out to us again or reply to me if you have follow-up questions. We're always here to help.

JenoP · ‎May 07, 2021

Hi FMW,

Hope you’re doing great. I wanted to see how everything is going about adding a taxable company contribution. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!

FMW · ‎May 10, 2021

Thank you for reply.

Once I make the adjustments (either JE or payroll adjustment to zero out), I will remove the "Company Contribution" pay item from the paycheck items, so that only the Vacation Deduction posts to liability account.

If I have any issues with that, you'll hear from me :)

Thanks and have a great day.

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Payroll deductions & contributions